+$227k Reasons to Do a Mid-Year Financial Review

Barely snatching victory from defeat, investors survived the intro to the 2025 Tariff Wars with a Mid-year comeback. For those who decided to sell early (January) and sit it out, you didn’t miss much. The market finally broke even and is ready for another generational run.

One thing is for sure: Trump is a very productive person. I don’t know when he sleeps. He makes Biden look feeble by comparison. For good or worse, we are all moving on pins and tweets because of him. His announcement of Liberation Day caused the market to flatline. However, those who bought into the market low in April are living well off a 30% return on investments YTD. Although there have been several global financial lulls and retrenchments, the worst of the Cocaine Recession might be behind us.

Time is moving quickly.

The second half of this game has begun! At this rate, there is a tentative chance that we close out the second half of 2025 with an extra 9 percent market gain. At least that’s what financial experts are all hoping for. I’m hoping for +11%. This prediction would put the S&P 500 at a 6,800 closing.

My wife and I will be headed back to Brazil for our YE anniversary trip. Until then, it’s crunch time for the rental property, the gym, and miscellaneous spending. We will have to spend anywhere from $5,000 to $12,500 on remaining home repairs, furnishing, painting, and even air duct cleaning for the in-laws. This year is expensive, but it’s one of the last years before we hit cruise control.

If the cards land on +10%, we have a great chance to become MULTI-MILLIONAIRES (aka $2M net worth) by October 2025.

Mid-Year Wealth Up $227k, due to Investments Rebounding

For context, we knew that this was coming. Specifically, Financial news people knew it was coming. Back in 2022, the Federal Reserve Chairman warned us of up to 25 rate increases to combat high inflation. He anticipated job losses in 2023, but that extended into 2024. In the end, it cost north of 20 million layoffs. Most of which, 700,000, came from the tech side. It’s the great AI reshuffle.

Over the last 5 years, the news has panicked many. Some bought too high and others sold when it was time to hold. Give or take, inflation has chewed through savings. Although pandemic investment gains reset to zero by October 31, 2022, the S&P 500 surged 60 percent since (end date June 30, 2025). Home prices slowed but remain elevated. Social media complaints and crashouts have increased. In some ways, this doesn’t feel right. But this is the new normal.

Some financial experts continue to feel uneasy about the year, tariffs, and incomplete wars. The only consensus is that Q3 will be positive going into a more hopeful Q4.

Our household net worth jumped +$227k (see above) with 11.30% gains from our investments. We are still dollar-cost-averaging (DCA) into quality companies in the meantime. For new investors, there is renewed confidence going into 2026 with the mantra BUY LOW and #HODL.

Investment Performance for the Year, So Far

As you can see above, our household portfolio is trending upward for the year. Something that most didn’t predict. We were in a rock and a hard financial place. America is managing as Nvidia $NVDA hits a $4 trillion market cap.

TNFG’s overall portfolio continues to beat the S&P. Yet I still think for the average investor, a simple index ETF like $VOO can cut the mustard. As of now, I’m baking in a +5% July return and +4% August.

To think, I started with a $500 rollover into my 401k in 2014 when I got to DC. The portfolio is around +$600k now, and the net/max financial plan and our strategy are still the same (see breakdown below):

1. Invest to match in the 401k,
2. Pay down credit card debt aggressively,
3. Increase 401k contributions until max (ie limit $23.5k for 2025),
4. Invest in a Traditional IRA (ie, limit $7k for 2025) and Health Savings Account (ie, limit $4,150 for 2025),
5. Get more money back during tax season,
6. Reinvest some more in an after-tax account for dividends and
7. Enjoy life!

Emergencies Hit When You Least Expect Them

While 2025 hasn’t been all milk and honey, we are taking this as an opportunity to grow.

While we are paying upfront for travel, we were hit with unexpected costs. To the tune of $5,000 for the year, which isn’t easy to come by.

The back-to-office adjustment hasn’t been merciful, yet I needed the steps.

This meant that we had to reduce our investment contribution goals from $100,000 to $75,000 for 2025. We also took money from our savings to pay for credit card debt. Why? It helps reduce monthly interest fees. This also meant that we used a lot of points as well. Every bit counts in a financial emergency.

Last year, I posted that my family had an Emergency Plan versus Emergency Savings. Time tested this theory, and the strategy held. From credit card points and HSA reimbursements, we were able to cover the cost. All with minimal direct impact on our overall wealth goals.

Disasters strike, and unfortunately, they will strike again. It’s unfair, but like a hurricane, it doesn’t discriminate. Cut back on unnecessary expenses when times are great. And double down on getting an emergency savings plan. It’s the only way to avoid further struggle.

So What’s New for the Mid-Year? And the Remainder?

If you’re new to my content, this blog post highlights the TNFG’s Semiannual Breakdown for 2025.

Like halftime, it’s a great time for us to reflect. There are always usable financial nuggets and aha moments that might help you along the way. High prices outside should translate to spending more time indoors, for us. We are hoping that’s the case for your pockets as well.

It’s not all bad. This remains a great opportunity to develop better habits. Check out TNFG’s Top 3 Best SMART+ER Goal books for inspiration.

Moving beyond Emergency and Survival Mode

I don’t like to play too close to the edge. So here’s TNFG’s game plan:

• Move $3,750 to reach the $5,000 Bank Savings Goal for 2025,
• Work with extended family for Wills and Estate Planning,
• Get a Term Life Insurance policy outside of work.
• Start re-stacking credit card rewards and miles through 2027,
• Boost +$10,000 into the Savings Plan for 2026,
• And settle with an extra $25,000 in 2027

Our family goal is to float savings for emergencies, rental real estate coverage, and/or dry powder for investments. Either way, having $40,000 on the side seems like a lot, but emergencies are costing more and more.

Rule of thumb for savings:

• No more than 3x months of expenses. For example, if your average monthly expense is $3,000, you would need $9,000.
• For families, especially if you rely on one income, that’s 6x months.
• If you are considering starting a business and quitting. I would highly recommend 1 year of savings. The caveat is that you go leaner on expenses in a demo year to feel what it’s like first.

Even though the game is unfair, there are always rules. If there are rules, there is always a trick to the game. Hard and challenging times are par for the course. They will happen. To mitigate them, you have to stay vigilant and work towards better outcomes today.

Cutting Down Debt through Mid-Year 2025 and Being Debt Free

Here’s the Semiannual Wealth Summary:

The 1st Half of 2025 was a surprise.

We closed at $1,852,643. Not exactly sure why the numbers differ, but I’m sure there is a bank timing banking system issue. With inflation or Deflation, higher credit balances, and higher costs, 2025 is a rollercoaster. In total, we saw an increase of 11.81% or $218,814.

The biggest risk remains with Putin’s Russia, China’s tariffs, and the Middle East. Beyond that, we are holding our breath to see if the low inflation rate will be sustained through September 2025. Turns out the summer time and back-to-school are high spending months for families, which will impact Q4.

Either way, you need to invest. Every millionaire’s portfolio starts with a dollar; might as well lean into it. Time to let your dollars do the heavy lifting.

What’s working toward Mid-Year wealth creation, and what’s working against it?

Yeah, about those expenses

With prices going up just about everywhere, expenses are settling into the high. We are improving with micro expenses.

What are our next wealth-building steps to close out the year?

Become millionaires before taking the next great trip. It’s been an adventure. After that, I’m shifting priorities from financial literacy to the gym. It turns out my mind only focuses on one thing at a time. Got to hack my discipline back into shape.

Beyond that, here are our overarching goals til Year End:

1. Keeping our expenses where they should be. All about “Not equating happiness and social acceptance based on the money you spend.“
2. Add $12,500 in M1 Finance focusing on Growth and Passive Income that generates at least $4,000 in dividends in 2023. Check out the portfolio in real-time. If you like the platform and want to start investing, I have a $10 for $10 referral if you need it. *Terms apply – https://m1.finance/SYdqDJ2SyADC.
3. Shooting for a sustained investment rate with the push for a $2 million net worth (by early 2026). To help monitor your savings, cash flow, net worth, investments, retirement, and more FREE with Empower (formerly Personal Capital)! Sign up with my link & get a $20 Amazon gift card. *Terms apply. https://pcap.rocks/lawrencegonz
4. Plan the 2026 travel season. Heading to Japan.
5. $30k repairs on the primary and rental. After that, we will be prepping to buy a new home by 2027, hopefully.

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